BP cancels plans for cellulosic ethanol plant

BP announced this week that is cancelling plans to build a commercial-scale cellulosic ethanol plant in Florida. BP had announced plans in 2008 to build the Florida facility. It had expected to use energy crops to produce 36 million gallons per year of cellulosic ethanol.

The company, however, will keep its biofuels research facility in San Diego, Calif., and its demonstration plant in Jennings, La., to further develop cellulosic biofuel technologies and license them for commercial use in the U.S. and internationally.

The company has completed construction of its joint venture 110 million gallon per year ethanol plant in Hull, England, which is expected to come online later this year. BP also owns three sugarcane ethanol mills in Brazil and is expanding production there. In addition, BP is developing advanced biofuel technology via its biobutanol joint venture Butamax.